EU session review: Euro draggs lower on concern debt crisis spreading

Data released:
05:30     France     CPI (June) unadjusted    0.1%    0.1%    0.1%
05:30     France     CPI (June) unadjusted Y/Y    2.1%    2.1%    2.0%
05:30     France     HICP (June) Y/Y    2.3%    2.2%    2.2%
06:00     Germany     CPI (June) final    0.1%    0.1%    0.1%
06:00     Germany     CPI (June) final Y/Y    2.3%    2.3%    2.3%
06:00     Germany     HICP (June) final Y/Y    2.4%    2.4%    2.4%
08:30     UK     HICP (June)    -0.1%    0.2%    0.2%
08:30     UK     HICP (June) Y/Y    4.2%    4.5%    4.5%
08:30     UK     HICP ex EFAT (June) Y/Y    2.8%    3.4%    3.3%
08:30     UK     Retail prices (June)    0.0%    0.3%    0.3%
08:30     UK     Retail prices (June) Y/Y    5.0%    5.2%    5.2%
08:30     UK     RPI-X (June) Y/Y    5.0%    5.3%    5.3%
08:30     UK     Trade in goods (May), bln    -8.5    -7.2    -7.6 (-7.4)
08:30     UK     Non-EU trade (May), bln    -5.1    -4.2    -4.5 (-4.3)

The euro fell after a meeting of European Union finance ministers failed to defuse the region’s escalating debt crisis.
The 17-nation currency fell to a record low versus the Swiss franc as yields on Italian and Spanish debt surged for a second day.
European finance ministers yesterday said they were considering using bond buybacks to ease Greece’s plight as bond yields surged in Italy and Spain. The announcement came after talks with bondholders on a swap of maturing Greek debt for new securities ran into opposition from the European Central Bank.
International Monetary Fund Managing Director Christine Lagarde told reporters in Washington that the fund isn’t discussing details of a second bailout with the EU, and “nothing should be taken for granted” on Greece.

EUR/USD recovered to $1.3996 after earlier it fell to $1.3830.

GBP/USD fell to $1.5775 before rose back to $1.5852.

USD/JPY continued to recover, holding currently at Y79.72 after it earlier fell to Y79.16.

At 1230GMT, the international trade gap is expected to decrease to $42.7 billion in May. Import prices posted only a modest increase in the month, with imported petroleum prices actually down. The supply shortage of auto imports from Japan will likely appear in the data as well. Meanwhile, Boeing reported 28 deliveries to foreign buyers in May, up from 24 in April.